Yen Falls on Word of New BOJ Chief

2/25/2013 12:02AM

Japanese Prime Minister Shinzo Abe nominated the president of the Asian Development Bank to lead the Bank of Japan. The WSJ's Jake Schlesinger tells us why Haruhiko Kuroda was Abe's first choice as he attempts to end decades of deflation.

This transcript has been automatically generated and may not be 100% accurate.

I ... the ... a it out today is expected to be the next governor at the Bank of Japan I'm Deborah con joining me is Jake passenger ten Q your achieve ... ok Jake last time I checked the yen was hovering around ninety four against the dollar ... on this certainly has been ... on the data we see they see a lower yen for some time now ... um didn't ... wanna keep all part of the right man had to take on the job in this current environment ... it will be muted minutes ... you see the most important question will have to see going forward whether he can ... outsource to expectations that ... as he signed the initial ... marker reaction is both encouraging stock markets clearly investors ... I think he's both he's fulfilling the on the promise of a more aggressive Bank of Japan governor ... the yen is easy not only is it that is the dollar now trading ... well above ninety four in the dollar I got a big pop this morning on the reports that Mr. Cote was taking over ... time hitting the dollar hitting its highest level against the yen since May of twenty ten ... the stock market also bounced up ... two percent this morning ... it is now trading at its best levels in September of two thousand and eight ... Soliz to nearly getting ending has high hopes and ... then article crude and will in fact the film I Shinzo Ave sprouts again I basically have made at ... fighting this deflationary cycle that has been in for some time ... at top priority on his agenda on ... any indication as to where our brightest and so on in terms of of of this policy ... yet well in time fortunately given due to watch the Journal has had two interviews with crude ... does the last couple of months and then seen in a rather remarkable public campaign for the dad ... and we posted videos about the theory is that I would urge viewers to look at ... I'm that he has been very public about saying he thinks the Bank of Japan can do lab work ... there has to be ... your income but Japan's economy ... I he's talked about and I'm just doing more to be more creative with the assets that it's buying ... I he's closely told is one of our interviews that he thinks that the bank Japan ... could meet the two percent inflation target then Ave ... and wanted to embrace within two years which is a pretty inhibitions ... some might say on realistically ambitious cool ... and and and Zach Spartak chair and Maine I'm benefiting from a weaker yen on countries like South Korea are hurting ... because that obviously a stronger yen a wine ... soaked ... into ... the into can actually take into consideration in ... this the red and what people are saying could be the Next currency war on in the current climate as it is ... when delayed its policy monetary policy ... use them it's interesting in and they think is harder where the grouping is in some ways so clever which is that ... I'm you know in the early weeks of the administration ... aam you as the yen was devaluing as result of expectations of these United through other words he's a ... alot of complains from around the world to him is now entering their competitive devaluation and so ... in addition to somebody who's willing to try and be more aggressive in terms of use your monetary policy would Japan really does need ... is an effective voice who can ... engage in a full thrust and Parry of debate over global economics and currency ... Kuroda is that that a ... corroded ... you know work for many years and the finance ministry as the vice minister who handled ... the questions of currency ... I'd during the period that he wasn't that nice Mr Finance International ... he oversaw a very heavy and controversial campaign ... I went to intervene in currency markets to drive down the value the yen so ... I'm you know it if there's anybody in Japan who is going to be affected in carrying his message ... and the biting Japan's credits ... Mr. Cote is probably Baghdad ... let's check and that she takes off into an essay commenced and ... we have our previous in recent interviews with prata on line at the beest dot com I'm Deborah con